In the case of a multidomestic competition, the multinational firm has in each country subsidiary companies which are autonomous and manage their activities as a portfolio. In the case of a global competition, the international firm looks for increasing its competitive advantage through its international presence.
At the moment to organise its activities internationally, the firm faces two arrays of options in both configuration and co-ordination for each activity in the chain value. Configuration options range from concentrated (performing the activity in one location and serving the world from it) to dispersed, that is, performing the activity in every country. Co-ordination options range from high to low. For example, a firm producing in three plants at one extreme (low co-ordination) may allow each plant to operate with full autonomy. At the other extreme (high coordination), the plants could be tightly co-ordinated by employing the same information system, the same production system, the same parts,...etc.
In the case of a multidomestic competition, the multinational firm has in each country subsidiary companies which are autonomous and manage their activities as a portfolio. In the case of a global competition, the international firm looks for increasing its competitive advantage through its international presence. At the moment to organise its activities internationally, the firm faces two arrays of options in both configuration and co-ordination for each activity in the chain value. Configuration options range from concentrated (performing the activity in one location and serving the world from it) to dispersed, that is, performing the activity in every country. Co-ordination options range from high to low. For example, a firm producing in three plants at one extreme (low co-ordination) may allow each plant to operate with full autonomy. At the other extreme (high coordination), the plants could be tightly co-ordinated by employing the same information system, the same production system, the same parts,...etc.
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In the case of a multidomestic competition, the multinational firm has in each country subsidiary companies which are autonomous and manage their activities as a portfolio. In the case of a global competition, the international firm looks for increasing its competitive advantage through its international presence.
At the moment to organise its activities internationally, the firm faces two arrays of options in both configuration and co-ordination for each activity in the chain value. Configuration options range from concentrated (performing the activity in one location and serving the world from it) to dispersed, that is, performing the activity in every country. Co-ordination options range from high to low. For example, a firm producing in three plants at one extreme (low co-ordination) may allow each plant to operate with full autonomy. At the other extreme (high coordination), the plants could be tightly co-ordinated by employing the same information system, the same production system, the same parts,...etc.
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